Many foreigners may wonder, “How can I buy a luxury property in Tokyo?”
In Japan, there are no restrictions on foreigners owning real estate. You do not need permanent residency or a special visa to purchase property, making it an attractive option for those considering real estate investment in Tokyo.
This article explains how foreigners can buy luxury properties in Tokyo, outlining four essential steps in the process.
Additionally, we will discuss key factors to consider when choosing a luxury property, the costs involved in purchasing, and the necessary documents. Be sure to read through for valuable insights.
How Can Foreigners Buy Luxury Property in Tokyo?
The most common way for foreigners to buy luxury property in Tokyo is through a real estate agency.
In Japan, real estate transactions are typically mediated by agencies that connect sellers and buyers to finalize contracts.
While property listings are available online, websites catering to foreign buyers, such as APARTMENTS TOKYO, provide English-language services and access to a large selection of luxury properties in Tokyo.
These services help buyers navigate the purchasing process smoothly and efficiently.
Understanding Tokyo’s Neighborhoods When Choosing a Luxury Property
Tokyo consists of distinct neighborhoods, each with unique characteristics. When selecting a luxury property, consider the features of different areas:
| Neighborhood | Characteristics |
| Minato-ku | One of Japan’s most prestigious residential areas, ideal for upscale living. |
| Shibuya-ku | Known for its youthful energy, but also home to exclusive neighborhoods like Shoto and Yoyogi-Uehara. |
| Shinagawa-ku | Offers excellent transportation access and hosts large shopping malls and event venues. |
| Chiyoda-ku | The political and economic hub, featuring international corporations and high-end supermarkets. |
| Meguro-ku | A trendy residential area popular with women in their 30s and 40s, known for stylish boutiques and patisseries. |
| Shinjuku-ku | A global destination with luxury shopping, Kabukicho nightlife, and top-tier university hospitals. |
| Ota-ku | Features Denenchofu, an upscale residential district, as well as advanced industrial hubs like Kamata and Yaguchi. |
| Koto-ku | A culturally rich district with traditional townscapes and seasonal festivals. |
| Setagaya-ku | Home to prestigious residential areas like Seijo, where many executives and celebrities reside. |
Since each Tokyo neighborhood offers a unique lifestyle, exploring different areas will help you find the best fit for your preferences.
Four Steps to Buying Luxury Property in Tokyo as a Foreigner
The process for foreigners to purchase luxury properties in Tokyo consists of the following four steps:
- Step 1: Search for Properties on Real Estate Websites
- Step 2: Contact the Real Estate Agency via Email or Phone
- Step 3: Visit the property for a viewing.
- Step 4: Sign the Purchase Agreement
Foreigners can purchase luxury property in Tokyo by following these four steps:
Step 1: Search for Properties on Real Estate Websites
Start by searching for luxury properties on websites like APARTMENTS TOKYO, which cater to foreign buyers.
You can refine your search by specifying criteria such as location, number of bedrooms, availability of concierge services, and whether the building is a high-rise.
Step 2: Contact the Real Estate Agency via Email or Phone
Once you find a property that interests you, reach out to the agency via email or phone.
Most real estate listing pages provide a direct inquiry form, and agents will assist you in finding the right property.
Step 3: Schedule a Property Viewing
After shortlisting potential properties, schedule a viewing to inspect them in person.
During the visit, assess not only the view, security, and layout but also the transportation access and nearby facilities to ensure a comfortable living environment.
Step 4: Sign the Purchase Agreement
Once you’ve decided on a property, proceed with the contract signing process.
After reaching an agreement with the seller regarding the purchase conditions, you will receive a detailed explanation of the contract terms before signing the official sales agreement.
Costs Associated with Buying Luxury Property in Tokyo
When purchasing a luxury property in Tokyo, additional costs beyond the property price will apply.
- New condominiums: Additional costs typically range from 3% to 6% of the property price.
- Used properties or new houses: Additional costs range from 6% to 9% of the property price.
Breakdown of Additional Costs:
| Expense | Description |
| Stamp Tax | Required for the sales contract. |
| Real Estate Acquisition Tax | A local tax charged upon property acquisition. |
| Registration and License Tax | A national tax for recording ownership on the property registry. |
| Judicial Scrivener Fee | Fee for professionals handling property registration. |
| Fixed Asset Tax & City Planning Tax Settlement | Taxes that must be settled when taking ownership. |
| Repair Reserve Fund | A one-time fee applicable to newly built condominiums. |
| Brokerage Fee | Fee paid to the real estate agency for transaction mediation. |
| Home Loan Processing Fee | Applicable if financing is required. |
Since taxes and fees will apply, make sure to account for these expenses in your budget.
Required Documents for Foreigners Buying Luxury Property in Tokyo
Foreigners purchasing luxury property in Tokyo must prepare the following documents:
- Certificate of Residence (if applicable)
- Residence Card or Special Permanent Resident Certificate
- Identity Verification Documents (Passport, etc.)
- Personal Seal (Hanko)
- Seal Registration Certificate
For non-residents, a sworn affidavit and additional identification documents may be required.
A sworn affidavit is an official document that certifies your identity and address in lieu of a residence certificate. This document must be notarized and is used for property registration in Japan.
Can Foreigners Obtain a Home Loan When Buying Property in Tokyo?
Foreigners can apply for a home loan in Japan, but the conditions and screening criteria differ based on permanent residency status.
- With Permanent Residency: Loan approval typically depends on factors like stable income, employment duration, and credit history.
- Without Permanent Residency: Many banks require a Japanese spouse or a permanent resident co-signer who can act as a guarantor. In such cases, the co-signer’s financial status will also be evaluated.
If you’re interested in financing your purchase, consult financial institutions for specific requirements.
Payment Methods for Foreign Buyers of Tokyo Real Estate
The payment methods for foreigners purchasing real estate in Tokyo mainly include the following three options:
- International Bank Transfers
- Home loan
- Banker’s Check
Foreign buyers can use the following payment methods when purchasing real estate in Tokyo:
1. International Bank Transfers
- Requires a remittance request form and a foreign exchange transaction statement.
- You will need to provide banking details, including:
- Bank Name
- SWIFT/BIC Code
- Branch Name & Address
- Account Name
- Branch & Account Number
- Recipient’s Address
2. Home Loan
- Foreigners can finance their purchase through Japanese home loans, though approval depends on residency status and financial standing.
3. Banker’s Check
- Some foreign financial institutions allow property payments via banker’s checks sent to Japanese real estate agencies.
- However, since banker’s checks take time to clear, they may not be ideal for large transactions.
Summary: A Guide to Buying Luxury Property in Tokyo as a Foreigner
If you’re looking to purchase luxury property in Tokyo as a foreigner, using an English-speaking real estate agency is highly recommended.
Asian Property’s APARTMENTS TOKYO specializes in luxury properties for foreign buyers, offering a wide selection of high-end apartments.
With access to high-rise buildings, pet-friendly properties, and concierge services, they provide a seamless experience for international buyers.